System overview

Escher.finance Architecture Overview

Escher is built on three core architectural components, enabling a robust cross-chain and cross-VM liquid staking solution:

1. Liquid Staking Contract (CosmWasm)

2. Nomos Chain Abstraction (Solidity)

3. Union Interoperability (CosmWasm ,Solidity)

This innovative architecture allows Escher to operate seamlessly across different blockchain networks and virtual machines .

The Stack

Core Components

1. Liquid Staking Contract

• Implemented using

• Manages the minting, burning, staking, and reward distribution within the system

• Handles the core logic of the liquid staking protocol

2. Nomos Chain Abstraction

• Utilizes ICA for cross-chain communication

• Key contracts:

  • ICA Handler: Manages inter-chain account operations

  • ICA Controller: Acts as a gateway for controlling messages

  • Optimizes and encodes/decodes messages for cross-chain interactions

3. Union Interoperability

• Leverages the Union Chain and IBC implementation

• Serves as the interoperability layer for sending assets and messages across chains

Core Components: Escher Liquid Staking Logic

Exploring Liquid Staking Across Chains Escher.Finance utilizes the Union and Nomos framework to provide a seamless liquid staking experience across different chains and ecosystems. The architecture enables users to stake assets from an EVM chain to another chain (e.g., Chain C) through a modular and chain-abstracted approach. This solution does not rely on forward packet messaging, ensuring efficient and scalable operations.

User Flow and Architecture

1. User Interaction on EVM/ALTvm Users initiate liquid staking by interacting with a smart contract deployed on the Union chain. This contract acts as the gateway to the liquid staking protocol and manages all interactions between the user’s EVM/altvm wallet and the target staking chain. Unlike traditional setups, there is no ICA controller on the EVM/altvm side—interactions are simplified and managed directly through the Union chain contract.

2. Liquid Staking on Union Upon receiving the staking request, the Union chain’s liquid staking protocol is triggered. This protocol:

   • Secures the user’s assets on Union.

   • LSTs representing the staked assets, which the user can use across DeFi protocols in the EVM ecosystem or beyond.

3. Cross-Chain Staking (Union -> Chain C) The liquid staking protocol leverages an ICA controller on the Union chain to stake the user's assets onto Chain C. This process is fully automated:

   • The ICA controller handles all cross-chain communications and staking transactions.

   • Users remain on their original EVM chain and do not need to manually interact with Chain C.

4. End Result for the User Users receive liquid staking tokens on their original chain (e.g., Base or Arbitrum) while their staked assets are securely delegated to validators on the destination chain (e.g., Celestia or Berachain). The user:

   • Does not need additional wallets or gas tokens.

   • Interacts only with their EVM/altvm wallet and the Union smart contract.

   • Enjoys seamless cross-chain staking without manual involvement in staking processes on other networks.

System Integration

This architecture enables Escher to provide a unified liquid staking experience across diverse blockchain ecosystems. Users can stake assets from one chain to another without leaving their preferred network, thanks to the seamless integration of these core components.

In the following pages, we will delve deeper into each of these architectural components, exploring their functionalities, interactions, and the unique benefits they bring to the Escher platform.